Curation Team
Subodh Runwal-promoted Runwal Enterprises, a Mumbai-based real estate developer, has received the Securities and Exchange Board of India (SEBI) approval to launch an initial public offering (IPO) worth Rs 1,000 crore.
According to the regulator’s filing, the proposed IPO will be a fresh issue of equity shares with a face value of Rs 2 each and will not include any offer-for-sale component.
The developer, which has built a strong presence across Mumbai’s residential and commercial markets, said the IPO proceeds will be used to fuel its expansion and strengthen its balance sheet. The offer structure also provides for a reservation of shares for eligible employees, who will receive a discount on subscription in the employee quota.
According to the regulatory filing, the issue will be conducted via the book-building route. As per SEBI’s regulations, at least 75% of the net issue will be allocated to qualified institutional buyers, not more than 15% to non-institutional bidders, and a minimum of 10% to retail individual investors. The company has also left room for a pre-IPO placement of up to ₹200 crore. If such placement is undertaken, the size of the fresh issue will be adjusted accordingly, mentioned the document.
Runwal Enterprises, founded by Subodh Runwal, has over four decades of legacy in real estate and has expanded from its initial focus on affordable and mid-income housing into premium and luxury developments. In recent years, the group has forayed into the luxury segment and has extended its footprint beyond the eastern suburbs into premium locations such as Mahalaxmi and Bandra. The developer also operates retail malls, commercial spaces, and educational buildings, strengthening its presence as a diversified player in Mumbai’s property landscape.
Between January 2019 and September 2024, Runwal Enterprises ranked second in Mumbai in terms of both new residential launches and sales, with market shares of 5.69% and 5.25%, respectively. In the Kalyan-Dombivli submarket, the developer held a dominant share, accounting for 17.63% of total sales and 20.84% of new launches during the same period.
As of September 30, 2024, the company’s portfolio included 15 completed projects, 25 ongoing projects, and 32 upcoming developments. Its residential portfolio has a total Developable Area and Estimated Developable Area of 48.71 million square feet. The DRHP outlines its ambition to become a full-service developer in Mumbai, spanning affordable, mid-income, and luxury residential projects, as well as commercial and mixed-use communities that integrate amenities and iconic landmarks, the DRHP mentioned.
The company’s financials show strong growth momentum. According to the restated consolidated statements, Runwal Enterprises reported revenues from operations of ₹662.19 crore in FY24, a 188.55% jump from ₹229.49 crore in FY23. Profit after tax for FY24 stood at ₹107.28 crore. For the six months ended September 30, 2024, revenues came in at ₹270.52 crore with a profit after tax of ₹25.53 crore.
The IPO will be managed by ICICI Securities Limited and Jefferies India Private Limited as book-running lead managers, while MUFG Intime India Private Limited will act as registrar. The company has proposed to list its equity shares on both the BSE and NSE.
With this clearance, Runwal Enterprises joins a growing list of Mumbai-based developers tapping the capital markets to fuel growth amid robust housing demand and increasing investor interest in the real estate sector. Market analysts said the IPO will test the appetite for real estate offerings at a time when property sales in Mumbai have reached record highs, particularly in the mid-income and luxury categories.
